Novo Nordisk A/S (NVO)

Sales and revenue recognitionSales represent the fair value of the sale
of goods excluding value added tax and after deduction of provisions for returned
products, rebates, trade discounts and allowances.

Provisions and accruals for rebates to customers
are provided for in the period the related sales are recorded. Historical data
are readily available and reliable and are used for estimating the amount of
the reduction in sales.

Revenue is recognised when it is realised
or realisable and earned. Revenues are considered to have been earned when Novo
Nordisk has substantially accomplished what it must do to be entitled to the
revenues.

Revenue from the sale of goods is recognised
when all the following specific conditions have been satisfied:



Novo Nordisk has transferred
to the buyer the significant risk and rewards of ownership of the goods



Novo Nordisk retains neither
continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold



The amount of revenue can
be measured reliably



It is probable that the
economic benefits associated with the transaction will flow to Novo Nordisk;
and



The costs incurred or to
be incurred in respect of the transaction can be measured reliably

These conditions are usually met by the time
the products are delivered to the customers. Licence fees are recognised on
an accrual basis in accordance with the terms and substance of the relevant
agreement.

As a principal rule, sale of intellectual
property is recorded as income at the time of the sale. Where the Group assumes
an obligation in connection with a sale of intellectual property, the income
is recognised in accordance with the term of the obligation. On the sale of
intellectual property where the final

sale is conditional on future events, the
amount is recorded as income at the occurrence of such future events.

Revenue is measured at the fair value of
the consideration received or receivable.